EUROPE - T. Rowe Price has launched its first global fixed income absolute return strategy.
The asset management firm said the fund aims to provide positive absolute returns in all market cycles through diversified sources of alpha, prudent cash management and rigorous risk control.
It said it hoped to add value via relative value positions (long/short strateg ies), sector allocation (long only) and security selection using cash bonds and derivative instruments.
The strategy will focus on opportunities in developed and non-traditional markets, including emerging market countries.
The fund is led by global fixed income portfolio manager Ian Kelson, who will be supported by the firm's currency, credit and cash management specialists.
Kelson has 27 years of investment experience, eight of which have been with T. Rowe Price.
He commented: "The strategy seeks to generate stable positive performance via a number of different active positions.
"Our convictions are expressed in both the interest rates market and the currency market, and to a lesser extent we also take positions in the credit market, by picking the best securities in the investment grade space as well as in the high yield market."
Kelson added: "We use a variety of instruments, from government bonds to corporate securities, as well as emerging market bonds where we have a strong expertise. We have taken the decision to apply a very conservative approach when it comes to the management of our cash holdings, as we want to be able to provide liquidity to our clients at any time, regardless of market circumstances."
It is available to investors via a SICAV or a separate account.
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